Sunday, February 6, 2011

Must-Watch Interview With David Stockman From CNBC


"When the Fed stops buying, who's going to these [Treasury] bonds?"

David Stockman was the Director of the OMB during Reagan's first term.  Even back then he was known as a crusader against deficit spending and the accumulation of Government debt.  My estimation of him was raised considerably when he recently was highly critical of Reagonomics and the extension of the Bush tax cuts:  "We're simply deferring massive taxes unfairly and immorally putting huge debt burdens on future generations and that is just wrong."  Stockman supported the tax cuts under Reagan, but ONLY if they were accompanied by a commensurate amount of spending cuts.  They were not...

He was on CNBC Friday for his take on the jobs report:  Re CNBC's reporting on the employement report:  "I heard more spin-control when I came out this morning than I ever heard in the White House."

On the fraudulently constructed unemployment rate metric of 9%:  "if we had the same [labor force] participation rate this January that we had a year ago...the unemployment rate reported this morning would have been 9.9% rather than 9...the 103.2mm jobs that were in the economy reported this morning is a number that was first reached in October 1999." Thus there's been no net job creation over the last 12 years.

And on the Fed money-printing policy:  The Fed policy is (so) dangerous. They say they are printing money like there's no tomorrow...to somehow stimulate jobs when it's pretty clear that the only thing that's happening is that all of these new high-powered reserves are flowing into the world economy creating the most vicious commodity hyperinflation"

Here's is the segment, which starts around the 3 min mark.  Unfortunatey Faber and the other douchebag on CNBC cut-off Stockman several times while he's making some insightful comments, but this is worth watching:

10 comments:

  1. no net job creation over the last 12 years = stealth depression = debt orgy dressed up as GDP gains by the ministry of truth

    Joe M.

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  2. Thanks for posting, I missed this on Friday. I always enjoy reading or watching David Stockman.

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  3. Cutting off guests is a standard CNBC tactic.

    If they have a honest guest who gets a wee bit too truthy for Jaime Dimon's taste, "sorry, we have to cut in for breaking news". That news invariably is fallback crapola used as a time filler to get the person off air. A report like "it's been rumored Steve Jobs has a new large pimple on the left cheek of his arse. Obviously this represents a great opportunity to buy AAPL."

    Once you're aware of it you see this trick used a lot on BS Central.

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  4. JP: Your CNBS report is TOO FUNNY! "...a new large pimple..." indeed! LOL!

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  5. Dave--

    2 quick questions please: 1. What do you think of BullionVault.com, are they trustworthy? 2. Same question for GoldMoney.

    I'd like to recommend a "fast and easy" physical bullion outfit to someone. Would you recommend either one of these? (My younger brother, who works for ABN AMRO in London, is in BullionVault, but I haven't even asked his opinion yet. He usually does his research though.)

    THANKS VERY MUCH for any information or opinion that you can give me.

    All the best,

    Newman.

    ReplyDelete
  6. another great site:

    http://reason.com/blog/2011/02/03/coming-soon-a-300-percent-incr

    http://reason.com/blog/2010/09/27/the-lighter-side-of-deadbeats

    ReplyDelete
  7. I don't know anything about BullionVault. Goldmoney is James Turk's company. I don't know what his fee structure but Turk is as trustworthy and credible as anyone out there. If an offshore storage solution is needed, I would use Goldmoney.

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  8. Stockman's analysis is flawed. The Fed never stops buying bonds. The Fed is all-in, as are both political parties with the exception of a handful of Tea Party types in Congress. This is our Dr. Strangelove moment in finance. We ride this bitch down until it explodes.

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  9. Anonymous, I believe he was asking the question rhetorically. He is smart enough to know that QE3 will quickly follow QE2.5

    ReplyDelete
  10. Silver prints 100% YOY gain.

    http://www.kitcosilver.com/

    Joe M.

    ReplyDelete